The Rupee opened weaker on Monday after investors stepped up bets on a Federal Reserve rate hike at ?the next policy meeting following hawkish comments by Fed Chair ?Kevin Warsh. The odds of a Federal Reserve rate hike at ?the September 15-16 meeting climbed to nearly 60% after Warsh, in ?a closely watched speech on Friday, said the U.S. central ?bank would "have work to do" if policymakers failed to find confidence that inflation ?was heading back to its 2% target. The comments marked his clearest acknowledgement yet ?that further rate increases may be needed to ease persistent price pressures. Before his speech, the odds of a hike next month were around 35%. Chair Warsh struck a more ?hawkish tone than the broad references to price stability he had made after ?the Fed meetings. The spillover into Asian currencies, however, was muted, with the region's currencies trading mixed and the biggest moves limited ?to around 0.2%. Apart from the Fed-related risks, the rupee will ?have to ?contend with Brent crude's rise to $90 a barrel on Monday after the U.S. attacked an Iranian island in the Strait of Hormuz, drawing retaliation from Tehran. For ?the rupee, ?the market sees 95.70-95.80 as a well-defended ?zone, with the Reserve Bank of India expected to lean against any move towards those levels, a ?currency trader at a bank said. The dollar held steady near a two-week high on Monday as markets ramped up bets on a rate ?hike after hawkish remarks by Federal Reserve Chair Kevin Warsh, while the yen slipped back through the closely watched ?160-per-dollar level. The U.S. central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2%, Federal Reserve Chairman Kevin Warsh said on Friday, in his clearest indication yet that further tightening may be needed to curb price pressure. The comments fuelled bets on a September ?rate hike. Markets raised the implied probability of a move next month to 57%, while yields on interest-rate-sensitive two-year U.S. Treasury ?notes rose to a more than one-month high of 4.33%. The euro edged up 0.1% to $1.1591, while sterling was little changed at $1.3539. Both currencies remained on track for their second monthly gains. The dollar index , which measures the U.S. currency against six major peers, ?ticked down slightly to 99.6 after jumping 0.6% on Friday to its strongest level since August 17. The yen was slightly weaker ?at 160.01 per dollar, after sliding beyond the 160-per-dollar level on Friday, a level widely viewed as ?increasing the risk of ?official intervention and putting the spotlight back on whether Tokyo and Washington may step in again to support the currency. Oil prices were trading more than 2% ?higher on Monday after the U.S. attacked an Iranian island in the Strait of Hormuz and drew retaliation from Tehran, as conflict on the middle east, extended into its sixth month. Brent crude futures climbed $2.51, or 2.85%, to $90.61 a barrel as of 0241 ?GMT while U.S. West Texas Intermediate crude was at $85.53, up $2.13, or 2.55%.......